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(Payback and discounted payback period calcutations) The Bar-None Manutacturing Co. manufactures fence panels used in catte feed lots throughout the Midwest. Bar-None's management is considering

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(Payback and discounted payback period calcutations) The Bar-None Manutacturing Co. manufactures fence panels used in catte feed lots throughout the Midwest. Bar-None's management is considering three imvestment projects for next year but doesn't wart to make any imvestrient that requires mere than mree years to recover the frm's inifal knestment. The cash fows for the thee projects (Project A. Project B, and Profect C) are as follows: a. Given Bar-Nones three-year paytsack period, which of the projects will qually for acceptance? b. Rank the three projects using their payback peciod. Which project looks the best using this criterion? Do you agree with tris ranking? Why or why nor? c. If Bar-None uses a discount rate of 93 percent to analyze projects, what is the discounted paytack period for each of the three projects? if the firm stil maintains its three-year paytack policy for the discounted payback, which projects should the firm undertake? Data table a. Given the cash flow information in the table, the payback period of Project A is years. (Round to two docimal places.) If the firm requires a 3year paytack before an investment can be accepted, the firm thould Project A because its payback period it the maximum scceptablo payback poriod, (Select from the drop-down mosus.) The payback poriod of Project B is years. (Reund to two decimal placest) If the firm requires a 3-year payback belore an imvestmant can be accepted, the firm should Project 8 because is paybock period is the maximum icceptable payoack period. (Selsct from the drop-down menun) The paytack period of Project C is yoars. (Round to two desimal plases.) If the 5 frm requires a 3-year payback belore an investmeck can be accepted, the firm should Project C beokuse its paytack period is the maximum accectable payback period (Select from the drop-down menus.) b. Rank the treen prejects useng their payback period: The projoct win the shortest payouck period is The project with the second shortess payback perbed is The project with the iongent paybsck period is Theraforo the project which locks best using the payback eriterion is (Select from the drep-down merus) A. No, there is no clear-cut way to define the cutoff criterion for the paybock period that is ted to the vave creasion potential of the irwestment, 3. No, the paytack method ignores cash flows that ase generated by the project beyond the end of the payback period. 1. No, the payback mothod ignores the tme value of money. D. Al of the above. Given the cash flow information in the table and the discount rate of 9.1%, the dscounted payback period of Project A is years. (Round to two decimal places.) the firm requires a 3-year payback before an investment can be accopted, the firm should coplable payback period. (Select from the drop-doan menus.) Project A because its discounted payback period is ve discountod payoack period of Project B is years. (Round to two decimal places.) the firm requires a 3-year payback betore an imvestment can be accepted, the firm should sceptable payback period. (Seloct from the drop-down menus.) Project 8 because its discounted paypack period is he discounted payback penod of Project C is years. (Round to two decimal places.) the firm requires a 3-yoar payback before an investment can be accepted, the firm should cceptable paytack period. (Select trom the drop-down menus.) Projoct C because is discounted payback period is

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